Trustee Company

Comprehensive Establishment Kit for Trustee Company Structure $990 (GST Incl.)

Before deciding on a trustee company for your self-managed super fund establishment, certain eligibility criteria must be met. In particular, a company is prohibited from being a trustee where:

A responsible officer of the company is a disqualified person;
A receiver, official manager or provisional liquidator has been appointed; or
The company has been wound up. 

A responsible officer is defined as a director, secretary or chef executive officer under SIS Act section (10). A disqualified person is defined under SIS Act section (120) as a person who:

Has been convicted of an offence involving dishonest conduct;
Has been subject to a civil penalty imposed under the SIS Act;
Is insolvent under administration (an undischarged bankrupt); or
Has been disqualified from acting as a trustee of self-managed super funds by the regulators. 

What is included in the trustee company registration package?

Where SATO SMSF Administration® is appointed to establish your trustee company, our service level agreement would include the following documentation:

2 copies of the company constitution;
Liaising with ASIC to obtain the Australia Company Number (ACN);
Certificate of company registration;
Minutes of the first directors’ meeting;
Share certificates;
Public officer documents;
Consent to act as director;
Application for shares;
Form 201 of the Corporations Act 2001
Notice of appointment of Public Officer; &
Register of members. 

Please note: Where self managed super funds are established with the objective of purchasing an investment property, a trustee company structure is recommended.

What are the advantages of a trustee company structure?

Depending on your circumstances, a trustee company structure may provide certain advantages over individual trustees. For example:

Funds assets are held in the name of the trustee company and not in the name of the fund members. Identification and separation of fund assets are simplified where the number of investment holdings increase overtime;
Dividends cheques are easily identifiable as they are written with the trustee company as the “payee”, and not under the members’ names;
Where the membership of the fund structure changes e.g. a member leaving the fund, it is easier to remove a director with a minute of resolution, than it is to remove individual trustees. For example, if the SMSF held 20-30 investments, then the ownership details need to be changed and communicated to all the relevant share registries. This can be a time consuming and costly exercise; &
Where the fund holds an investment property, the service of a conveyance would need to be engaged to change the title of ownership if a member was to leave. 

What are the disadvantages of a trustee company?

  • Additional compliance costs with ASIC. However, costs can be significantly reduced if the company makes an election to operate solely as a “superannuation trustee” – special purpose company, and not engage in other business trading activities; &
  • Problems can arise for small to medium business owners who elect to use the one company to act as a superannuation trustee, as well as carrying on a family business. Monies can be inadvertently deposited and withdrawn from the incorrect account resulting in breaches of the superannuation laws.

 

 

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